Water rates are increasing in 2026 mainly because the costs of getting water to the region have become more expensive, and those costs are largely unavoidable. Most of the county’s water still comes from far away, primarily the Colorado River, and the price to buy, treat, and transport that water has grown significantly due to inflation, energy costs, and environmental requirements, among others. At the same time, SDCWA invested heavily in long-term reliability projects like the Carlsbad Desalination Plant, new reservoirs, and major water transfers so the region would not face severe water shortages like other parts of California. Those projects did what they were designed to do—kept the region secure during drought—but they come with additional costs for their construction, ongoing maintenance, and payments to other agencies to secure that water which must be covered every year.

Another key factor is that the region now uses far less water per person than it did in previous decades, thanks to conservation, efficient appliances, and new local supplies. This is a success for sustainability.  However, SDCWA projections from decades ago assumed that water use would continue to grow year-over-year due to population growth among other causes.  Since most water costs are “fixed,” the price per unit of water rises when sales go down. In other words, even if people use less water, the core infrastructure—treatment plants, aqueducts, dams, desalination facilities, and long-term supply contracts—still has to be paid for. These pressures mean wholesale rates  increase.

To help reduce increases, SDCWA has cut internal spending, slowed capital projects, and secured grants to upgrade systems at lower cost. Additionally, SDCWA also recently settled a long-running dispute that now allows the sale or transfer of surplus water to other agencies, potentially bringing in revenue that could help ease future price pressure. Although rates will continue rising over time, the region is paying for a more reliable, drought-resistant system that protects homes, agriculture, business, and the broader economy.

What is the District doing to limit rate increases?

The District has only increased rates for our own operations, maintenance, and capital spending 8% since 2020.  This is despite costs in the region constantly rising due to inflation, which equaled over 29% since 2020.   District Staff and the Board of Directors diligently explore ways to limit costs that we can control and look for ways to increase our revenues outside of what we charge our customers.  These cost savings initiatives have included renewable energy projects, strategic investment of your funds to maximize interest income, prepayment of obligations to save on long-run costs, capital investment and maintenance of assets, and ensuring we pay the lowest costs for the highest levels of service on contracts, among others.   Additionally, we have a seat on the Board of Directors for SDCWA, and we are striving to ensure they are only passing through the most reasonable increase that ensures SDCWA's continued ability to provide water to the region at the most efficient price.  

The District is also continuing to pursue litigation against the City of San Diego for their inadequate maintenance of the Lake Hodges Dam and our loss of local water from this low-cost & environmentally beneficial source.  We will continue to explore all avenues for a successful outcome on the loss of this water in addition to finding the most cost-effective long-term solution to the dam's replacement that ensures our water rights are preserved.